Following my own financial advice

By David Baruffi, Financial Advisor

I have recently returned from a fantastic five week holiday in France where I had time to reflect on life and financial planning advice.

I have always exalted following my own advice. That is, following the same advice I provide for my clients when it comes to financial planning.

There are three items that are core to long-term financial planning:

1.       Managing your investments

2.       Maintaining your motivation to work

3.       Preparing for a life without work

Your Investments

Managing your investments is a crucial aspect of financial planning. I invest my money in the same investments I invest my clients’ money. Now that I am inside 10 years from retirement I have moved down a notch in my investments to a moderately conservative investment mix. It is not that I fear doom and gloom as the media would have us believe rather than reducing unnecessary risk from my portfolio. I still need growth to meet my goals however in a volatile market the risk reward trade-off is less attractive than before.

Your Motivation to Work

Maintaining your motivation to work is crucial to building wealth in the last ten years of your working life. I use travel as a great source of motivation. Basically the theme of: work, save, then reward have helped me maintain my motivation over the years. While we might have great passion for our job or business we still need to reward ourselves (and our families) for the sacrifices that precede success.

Having recently returned from a glorious five week holiday in France, our aim was to see as much of the country as possible at a leisurely pace, which we did. France has had an unusually wet spring so the fields were still green and picturesque. And yes, the wines and cheeses were as good as everyone told us they would be.

After giving ourselves some recovery time we will start to plan the next sojourn. Our aim is to enjoy our travel while we are still young and fit enough to see the world.

Life After Work

Preparing for life after work is well underway. I took up golf a few years back. Starting golf late in life has not been without its challenges. However it is a great sport that you can play into old age. We have a number of players in their 90’s in our club and it is great to play with them (even though it is embarrassing to lose to them).

We never know for certain what the future holds. However some things are self-evident. Firstly, we are all running out of time so although we need to save and invest for the future we also have to recognise when the future is here. Secondly, there is no better way for providing financial security than to have a source of income. Therefore the longer we work the better off we will be. Thirdly, transition to retirement is easier when you take steps to prepare for it.

Take the Blueprint Wealth 30 Second Retirement Planning Preparation Quiz to see if you need a Retirement Plan. At Blueprint Wealth we offer financial advice that is right for you, no matter what stage of life you are at. Contact us to set up a plan that is right for you.

David Baruffi, Authorised Representative of Blueprint Planning Pty Ltd (ABN 78 097 264 554), trading as Blueprint Wealth; Authorised Representative and Credit Representative of AMP Financial Planning Pty Ltd, Australian Financial Services Licensee and Australian Credit Licensee.

This article contains information that is general in nature. It does not take into account the objectives, financial situation or needs of any particular person. You need to consider your financial situation and needs before making any decisions based on this information.

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